US tariffs cause ₹25,000 cr loss to Andhra's shrimp industry: CM Naidu

Andhra Pradesh accounts for 80 per cent of the country's shrimp exports and 34 per cent of marine exports, valued at around ₹21,246 crore annually, Naidu said

Andhra Pradesh Chief Minister N Chandrababu Naidu has said that tariffs imposed by the United States (US) on Indian goods have inflicted losses of around ₹25,000 crore on the state’s shrimp industry, leading to the cancellation of 50 per cent of its export orders.

 

Naidu also wrote to Union Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Fisheries Minister Rajiv Ranjan Singh, seeking the Centre’s support for the state’s aquaculture sector, which he said provides employment to over 250,000 families and sustains nearly 3 million people directly or indirectly, reported PTI.

 

He stated that Andhra Pradesh accounts for 80 per cent of the country's shrimp exports and 34 per cent of marine exports, valued at around ₹21,246 crore annually. 

 

He further stated that his government has taken steps to support aquaculture farmers by persuading feed manufacturers to cut prices by ₹9 per kg and is also considering providing subsidised power transformers.

 

He urged the Centre to:

 

• Enhance domestic usage of aquaculture products, provide GST flexibility, and extend financial support
• Create a ₹100 crore corpus fund, set up cold storages and hygienic fish/seafood markets
• Launch awareness campaigns to promote seafood consumption, citing nutritional value
• Address low per capita seafood consumption in India (12-13 kg/year vs global 20-30 kg/year)
• Run dedicated trains to transport aquaculture products from South India nationwide
• Provide a one-time top-up loan of ₹1 lakh under Kisan Credit Cards for the fishing community
• Strengthen processing, packaging, and cold-chain facilities to improve competitiveness
• Open regional offices of Indian Council of Agricultural Research (ICAR)-Central Institute of Brackishwater Aquaculture (CIBA) and ICAR-National Bureau of Fish Genetic Resources (NBFGR) in Andhra Pradesh

Andhra Pradesh's shrimp industry

 

Andhra Pradesh’s shrimp sector contributes 41 per cent of India’s export volume and 66 per cent of export value in marine products.

 

India exported 716,004 tonnes of frozen shrimp worth $4.88 billion in 2023-24, with 297,571 tonnes shipped to the US, according to data from the Marine Products Export Development Authority (MPEDA) . These exports are overwhelmingly dominated by one species, Vannamei, which makes up 87 per cent (625,475 tonnes) of the total, valued at $4.25 billion. Of this, the US accounts for 54 per cent, while China takes 16 per cent and the European Union 9 per cent.

 

Duggineni Gopinath, a veteran shrimp farmer from Prakasam district in Andhra Pradesh, told Business Standard earlier this year, “Although Andhra Pradesh’s share in Vannamei shrimp export value is only about 30 per cent, exporters here are taking advantage of the situation to cut prices across all markets. We are the sufferers.”

 

The US tariffs

 

With US tariffs in place, shrimp exports face mounting uncertainty. Washington has levied a 25 per cent reciprocal tariff on India, along with a 25 per cent punitive duty linked to its imports of Russian oil. On top of this, Andhra Pradesh’s shrimp industry is burdened by a 5.76 per cent countervailing duty and a 3.96 per cent anti-dumping duty, pushing the overall tariff burden to 59.72 per cent.